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22 September 2016
I had
mentioned in Wednesday’s closing report that Sensex, Nifty await Fed actions. The
major indices of the Indian stock markets rallied strongly on Thursday, as the
Federal Reserve maintained interest rates unchanged, to close around 1% higher
than Wednesday’s close. The trends of the major indices in Thursday’s trading
are given in the table below: The Total
Investment & Insurance Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
Indian
equity markets soared on the back of positive global cues on Thursday. The key
indices gained around a percentage each during the mid-afternoon trade session,
as healthy buying was witnessed in stocks of banking, automobile, and capital
goods. The BSE market breadth was tilted in favour of the bulls -- with 1,695
advances and 1,044 declines. On the NSE, there were 993 advances, 471 declines
and 74 unchanged.
The
Fed's decision to hold interest rates fuelled a rally in the equity markets
globally leading to a sharp gap up move in our markets as well, according to
market analysts. Initially on Thursday, the benchmark indices opened in the
green following positive global cues. Investors' sentiments were buoyed on the
US Federal Reserve's decision to keep its key interest rates unchanged for
September. Besides, domestic cues such as the proposal to merge the general and
railway budget, along with consultations to advance the budget presentation
date, gave a positive momentum to the equity markets. The Total Investment & Insurance Solutions
Union
Finance Minister Arun Jaitley on Thursday said that infrastructure is the key
to economic growth. Jaitley said this in his inaugural address at the BRICS
(Brazil, Russia, India, China and South Africa) India 2016 seminar on
"Best Practices in Public Private Partnerships (PPPs) and Long-term
Infrastructure Financing". The one day seminar was organised in the
national capital by the Department of Economic Affairs, Ministry of Finance,
with organisational support from the Confederation of Indian Industries (CII).
Delegates from BRICS countries and senior officials of the Finance Ministry,
along with senior executives of private sector companies participated in the seminar.
It was organised in the run up to the BRICS Summit scheduled for October, 2016.
India assumed the chairmanship of BRICS in 2016. According to Jaitley, an
institutionalised forum amongst BRICS countries could serve as a regional
knowledge hub with exchange of information facilitated through cloud sharing,
and other electronic methods. He pointed out that development projects in
transportation sector like highways, ports and railways will be the area of
mega economic activities as far as the infrastructure sector in India is
concerned. The Finance Minister further said that investment from both the
public and private sector will be required for financing projects in the areas
of health, education, sanitation, renewable energy, highways, ports and railways
among others. There is likely to be a good opportunity for investors in India
in the infrastructure sector.
The
US dollar decreased against other major currencies as investors were digesting
the latest Federal Reserve statement. In the statement released on Wednesday
after Fed's two-day policy meeting, the US central bank decided to keep its
federal funds rate unchanged amid recent weak economic data and tepid
inflation. "The Committee judges that the case for an increase in the
federal funds rate has strengthened but decided, for the time being, to wait
for further evidence of continued progress toward its objectives," said
the statement.
As
the global financial markets waited nervously, the US Federal Reserve kept its
key interest rates unchanged -- a move that should bring some cheer when Indian
markets open on Thursday. "The committee judges that the case for an
increase in the federal funds rate has strengthened but decided, for the time
being, to wait for further evidence of continued progress toward its
objectives," said a statement by the Federal Open Market Committee after a
much-watched, two-day meeting. The committee said even though unemployment rate
is little changed in recent months, the job gains have been solid, even as
household spending has been growing strongly. But business investment has
remained soft, while inflation has continued to run below the 2 per cent
long-term target. "Against this backdrop, the committee decided to
maintain the target range for the federal funds rate at 0.25% to 0.50%." The Total Investment & Insurance Solutions
The
top gainers and top losers of the major indices are given in the table below:
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| Top Gainer (The Total Investment & Insurance Solutions) |
The
closing values of the major Asian indices are given in the table below:The Total Investment & Insurance Solutions
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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